Glencore (GLEN) AI Stock Analysis

• Market Cap: £41.11B
• Dividend Yield: 2.15%
• Average Volume (3M): 44.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -1.06%
• EPS Growth: -285.88%
• Country: UK
• Employees: 84,146
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 11,852,017,000
• 10 Day Avg. Volume: 62,082,938
• 30 Day Avg. Volume: 44,792,201
• PEG Ratio: 0.24
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 12.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £383.50
• Price Target Upside: 10.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 64 Neutral
• Price Target: 322.00p ▼(-7.39% Downside)

Glencore's overall stock score reflects a mixed financial performance with profitability and cash flow challenges, offset by a positive earnings call outlook. Technical analysis suggests caution with bearish momentum, and valuation metrics highlight risks with a negative P/E ratio. The company's focus on cost savings and shareholder returns provides some positive sentiment.

Positive Factors

Cost Savings Initiatives

The cost savings initiatives will improve operational efficiency and reduce expenses, enhancing long-term profitability and competitiveness.

Strong Marketing Business

The resilience of the marketing business provides a stable revenue stream, supporting Glencore's financial performance despite market volatility.

Shareholder Returns

Commitment to shareholder returns reflects strong cash flow management and enhances investor confidence in the company's financial health.

Negative Factors

Rising Leverage

Increased leverage can limit financial flexibility and pose risks to stability, especially if profitability challenges persist.

Declining Free Cash Flow

Declining free cash flow growth can constrain investment in growth opportunities and impact long-term financial sustainability.

Profitability Challenges

Negative profitability margins indicate operational inefficiencies and may hinder the company's ability to generate sustainable earnings.

Glencore Business Overview & Revenue Model

Company Description

Glencore plc produces, refines, processes, stores, transports, and markets metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments, Marketing Activities and Industrial Activities. The company produces and markets copper, cobalt, nickel, zinc, lead, chrome ore, ferrochrome, vanadium, alumina, aluminum, tin, and iron ore. It also engages in the oil exploration/production, distribution, storage, and bunkering activities; and offers coal, crude oil and oil products, refined products, and natural gas. In addition, the company markets and distributes physical commodities sourced from third party producers and its production to industrial consumers in the battery, electronic, construction, automotive, steel, energy, and oil industries. Further, it provides financing, logistics, and other services to producers and consumers of commodities. The company was formerly known as Glencore Xstrata plc and changed its name to Glencore plc in May 2014. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.

How the Company Makes Money

Glencore generates revenue primarily through its trading and marketing operations, which account for a significant portion of its income. The company sources raw materials from its own mining operations as well as third-party suppliers and sells them to industrial customers and other end-users. Key revenue streams include the sale of metals, minerals, and energy products, with copper and coal being particularly significant. Additionally, Glencore benefits from price fluctuations in commodity markets, which can enhance its profitability. The company also engages in long-term contracts and strategic partnerships with various stakeholders, including mining companies and energy producers, contributing to stable revenue generation. Furthermore, Glencore's integrated business model allows it to leverage its logistics capabilities to optimize supply chain efficiency and reduce costs, further enhancing its earnings potential.

Glencore Financial Statement Overview

Summary

Glencore's financial performance shows mixed results. The income statement indicates revenue growth but declining margins and profitability. The balance sheet is stable but with increased leverage and negative equity returns. Cash flow statements reveal strong operating cash flow but declining free cash flow growth and negative net income, highlighting profitability and cash flow challenges.

Income Statement

Glencore's income statement reflects a volatile performance with significant fluctuations in revenue and profitability. The gross profit margin has decreased over the years, falling to 2.88% in 2024 from 4.95% in 2023. The net profit margin turned negative in 2024 at -0.71%, a decline from 1.96% in 2023, indicating profitability challenges. Revenue growth from 2023 to 2024 was modest at 6.01%, but this follows a substantial decline from 2022. Despite a positive EBITDA margin of 3.69% in 2024, the absence of EBIT highlights operational challenges.

Balance Sheet

The balance sheet indicates a stable equity base with a debt-to-equity ratio of 0.94 in 2024, which is manageable but has increased from previous years. The equity ratio stands at 31.17%, down from 35.17% in 2023, suggesting increased leverage. Return on equity turned negative in 2024 at -4.02%, reflecting profitability issues. Overall, the balance sheet shows reasonable stability, but rising leverage and diminished equity returns pose concerns.

Cash Flow

Cash flow analysis shows a decrease in free cash flow from 2023 to 2024, reflecting a negative growth rate of -32.15%. The operating cash flow to net income ratio is 6.15 in 2024, indicating strong operating cash flows relative to net income, despite the latter being negative. The free cash flow to net income ratio is -2.72, highlighting cash flow challenges. Overall, the company maintains robust operating cash generation, but declining free cash flow growth and negative net income are concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.25B	230.94B	217.83B	255.98B	203.75B	142.34B
Gross Profit	5.76B	6.28B	10.78B	27.26B	12.38B	3.70B
EBITDA	9.15B	9.85B	15.32B	32.23B	16.03B	3.13B
Net Income	-2.06B	-1.63B	4.28B	17.32B	4.97B	-1.90B
Balance Sheet
Total Assets	132.18B	130.46B	123.87B	132.58B	127.51B	118.00B
Cash, Cash Equivalents and Short-Term Investments	2.70B	2.17B	1.95B	1.97B	2.69B	1.42B
Total Debt	42.34B	38.11B	32.24B	28.78B	34.64B	37.48B
Total Liabilities	99.39B	94.80B	85.63B	87.36B	90.59B	83.60B
Stockholders Equity	37.83B	40.67B	43.58B	49.41B	39.93B	37.64B
Cash Flow
Free Cash Flow	143.00M	4.44B	6.55B	9.48B	5.24B	-905.00M
Operating Cash Flow	6.06B	10.05B	11.04B	13.66B	8.86B	2.66B
Investing Cash Flow	-12.39B	-11.72B	-3.56B	-1.72B	-541.00M	-2.71B
Financing Cash Flow	6.20B	2.14B	-7.49B	-13.20B	-6.52B	-320.00M

Glencore Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 347.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GLEN, the sentiment is Positive. The current price of 347.7 is above the 20-day moving average (MA) of 319.04, above the 50-day MA of 302.98, and above the 200-day MA of 301.47, indicating a bullish trend. The MACD of 13.01 indicates Negative momentum. The RSI at 79.92 is Negative, neither overbought nor oversold. The STOCH value of 90.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GLEN.

Glencore Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIO	81 Outperform	£84.54B	10.08	18.43%	5.77%	-3.50%	-7.04%
GLEN	64 Neutral	£41.11B	―	-5.26%	2.15%	-1.06%	-285.88%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AAL	56 Neutral	$30.36B	―	-9.21%	0.85%	-27.65%	-160.77%

Glencore Corporate Events

Glencore Advances Share Buyback Program with UBS Transaction

Glencore plc announced the purchase of 10,951,423 of its ordinary shares from UBS AG as part of its ongoing share buyback program. The shares were bought at a net price of CHF 2.0270 per share, with the transaction forming part of a strategy to reduce the number of shares in circulation and enhance shareholder value. This buyback program, which started in July 2025, is expected to conclude by February 2026, aligning with the release of the company’s financial results. The transaction reflects Glencore’s commitment to managing its capital structure efficiently and returning value to shareholders.

The most recent analyst rating on (GB:GLEN) stock is a Hold with a £306.00 price target. To see the full list of analyst forecasts on Glencore stock, see the GB:GLEN Stock Forecast page.

Glencore Announces 2025 H2 Distribution Details

Glencore announced a distribution of US$0.10 per share for the financial year ending December 31, 2024, to be paid in two equal tranches of US$0.05 per share. Shareholders on the Jersey register can opt to receive payments in Pounds Sterling, Euros, or Swiss Francs, with the exchange rates determined as of September 4, 2025. The distribution may qualify as ‘qualified dividends’ for US Federal income tax purposes, impacting shareholders’ tax liabilities.

The most recent analyst rating on (GB:GLEN) stock is a Hold with a £306.00 price target. To see the full list of analyst forecasts on Glencore stock, see the GB:GLEN Stock Forecast page.

Glencore Announces Total Voting Rights Update

Glencore has announced its total voting rights as of August 29, 2025, with an issued share capital of 13,156,400,000 ordinary shares, of which 1,268,109,041 are held in treasury, resulting in 11,888,290,959 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules, reflecting Glencore’s commitment to transparency and regulatory compliance.

The most recent analyst rating on (GB:GLEN) stock is a Hold with a £304.00 price target. To see the full list of analyst forecasts on Glencore stock, see the GB:GLEN Stock Forecast page.

Glencore Advances Share Buy-Back Program with UBS Transaction

Glencore plc announced the purchase of 8,022,682 of its own ordinary shares from UBS AG, as part of its ongoing share buy-back program. The shares were purchased for cancellation, reducing the total number of shares in issue to 11,880,268,277. This transaction is part of a broader strategy to manage the company’s capital structure and is expected to be completed by February 2026, coinciding with the release of its financial results for the 2025 fiscal year.

The most recent analyst rating on (GB:GLEN) stock is a Hold with a £304.00 price target. To see the full list of analyst forecasts on Glencore stock, see the GB:GLEN Stock Forecast page.

Glencore Advances Share Buy-Back Program with UBS Transaction

Glencore plc announced the purchase of 9.3 million of its own shares from UBS AG as part of its ongoing share buy-back program. The shares were purchased for cancellation, reducing the total number of shares in issue. This transaction is part of a broader strategy to manage equity exposure and is expected to conclude by February 2026, coinciding with the release of the company’s financial results.

The most recent analyst rating on (GB:GLEN) stock is a Buy with a £350.00 price target. To see the full list of analyst forecasts on Glencore stock, see the GB:GLEN Stock Forecast page.